If you’ve had some credit challenges in the past but currently have the ability to repay a mortgage, then FHA modular and manufactured home loans are an excellent option for you. In many cases, these loans have lower credit score and down payment requirements than conventional loan products—this means past credit challenges, or no established credit, will not automatically deter you from obtaining an FHA home loan.
The VA offers manufactured and modular home financing to active duty military, veterans, and their spouses. Like FHA loans, VA home loans have lower credit requirements, but they also carry significant additional benefits—you may be able purchase your new home without a down payment, you won’t have to make monthly PMI payments, and the home appraiser is selected independently by the VA, meaning the lender has little or no control over the appraisal process.